<<

Hernán Bianchi Benguria + Amanda Miller IS THE TRANSNATIONAL ? Urban Theory Lab: Operational Landscapes of Planetary Urbanization

A series of industrialization waves, driven by sociopolitical concerns and State policies—from prison camps, to Soviet socialism, and then mass privatiza- tion—created a framework for the present-day Siberian urbanization process. The case of , a , nickel and -based mega- Siberia — ’s hinterland — historically complex in northern Siberia, is representative of the monoindustrial corporate strategy within the post-Soviet backdrop of oligarchic , corruption and political unrest. The company’s territorial scale mobilization through logistics networks, , and corporate alliances are strategies sought to supported the building of empire. This con- reduce corporate exposure while leaving unchecked the ecological and social risks of their own creation. 7KHVLJQL¿FDQWODQGXVHWUDQVIRUPDWLRQVUHVXOWLQJIURPSULPDU\FRPPRGLW\H[WUDFWLRQKDYHFRPHDWJUHDWHQYLURQPHQWDOFRVWLQVFULELQJWKHODQGDQGDWPR- sphere surrounding these sites. Soils around Norilsk have elevated levels of copper and nickel concentrations within a 60-kilometer radius of the city. Severe tinues as the interests of an intricate network deforestation surrounds Norilsk; notably there are not any living trees within 50-kilometers of the smelter, mainly due to . The high level of minerals in the soil has lowered the freezing temperature of the groundwater, resulting in land subsidence due to accelerated thaw. With climate change, a similar but larger scale effect will result, taxing existing infrastructure and buildings. An added concern is the potential to further these effects, as of corporate power capitalizes and re-articu- sequestered in permafrost soils will be released as greenhouse gases once the soil thaws. The critique of the corporate urbanization project is its drive for unabated development stemming from the corporation’s own need for self-preservation lates prior rounds of industrialization. through capital accumulation, without regard for degradation of the environment, health and societal well-being

To Transit Warehouse in SALES OFFICE IN PITTSBURGH

Messoyakhskoye Gas Field Operations Commenced May 18: Norilsk-Taimyr Energy Company Established Finished 1975, Ust-Khantaiskoe Reservoir To Transit Warehouses in Asia SALES OFFICES IN AND HONG KONGG Yuzhno-Soleninskoye Gas Condensate Field Operations Commenced Kureiskaya Hydroelectric Power Station Purchased by Norilsk Nickel Ltd. Ust-Khantaiskaya Hydroelectric Power Station Ust-Khantaiskaya Hydroelectric Power Station Purchased by Norilsk Nickel LONDONONDO Severo-Soleninskoye Gas Condensate Field Operations Commenced August 5: Pelyatkinskoye Gas Concentrate Field Developed

Energy Norilsk Nickel Logistics B.V.. 1920 ROTTERDAMTERDA 1940 1960 1970 1975 1980 1983 1997 2000 2005 2006 2020 1966 1935 1945 1987 2000 2009 2014 Original Norilsk Airport Built, Railway Construction Begins Later Demolished and Relocated Alykel Airport Commences Operations Norilsk Nickel Acquires Controlling Stake in Yenisei River Shipping Co. Norilsk Nickel launches fleet of icebreaking shipping vessels Norilsk Nickel buys stake in Yenisei River Shipping Company Trade Norilsk Nickel OverseasOverseas AG Kola MMC ZUZUGG Seaport May 2007 Norilsk Nickel 50,000 USD/mt Oy Logistics

Gipronickel Institute

ST. PETERSBURG Seaport and Transit Warehouse

2878km March 2009 Dudinka Seaport Norilsk Nickel Polar Division Nickel Commodity Price, 1987-2016 NORILSK 1 USD / 1 Russian

NIZHNY NOVOGOROD

RRezhnickel Nickel Deposit

Russian Ruble Exchange Rate, 1993-2016 SAMARA , geologist, discovers and nickel deposits on the Taimyr Peninsula Lipovskii Field Reserves Exhausted Norilsk Nickel spins off -mining assets: Gold Created Ufaleynickel, First Nickel Extraction Ufaleynickel Completed 2013, Norilsk Nickel Bugdainskoye Exploration Site Developed Plant and Mine in Russia Ongoing, Norilsk Nickel Extraction Exploration Site: Maslovskoye Deposit Refinery 1500km Zapolyarye Heatlh Resort Minerals Kun-Manie Project Talnakh Deposit Area Developed Ongoing, Norilsk Nickel Extraction Area Exploration Site: Syradasaiskaya Deposit Severonickel Combine is built in Lesosibisrk March 1: First Copper-Nickel Matte Produced River Port Norilsk Nickel Extraction Exploration Site: Talnakh Ore Field March 10: First High Grade Matte Produced Nadezhda Metallurgical Plant 1965: World's Largest and Talnakh Enrichment Plant Ongoing, Norilsk Nickel Extraction Exploration Sites: Pechenganickel Mining and Metallurgical Combine built Nickel-Copper-Sulfide Ore Phase 1 Commences Operations Bystrinskoye & Bystrinsko-Shirinskoye [Cu-Fe-Au] Developed by Inco in formerly Finnish Territory Deposit Discovered Oktyabrsky and TOLMACHEVO Krasnoyarsky First Converter Matte Produced Taimyrsky Mines Talnakh Concentrator Upgrade, First Stage RiverR Port Extraction Commissioned 1919-1926 2006 2008 2009 2015 1962 1965 1973-1988 1981 1930 1934 1935 1939 1940 1942 1950 1970 1990 1993 2010 ABAKANA 2001 2004 2006 2012 2014 1922 1935 1953 1956 1989 1993 1995 1997 Bugdainskoye Molybdenum Project is put on hold for

1938-1941 three years due to low market prices Zapolyarye Health Resort Built Norilsk Nickel Renovations to Zapolyarye Health Resort Chita Project July 1: MMC Norilsk Nickel holds 99.999% of shares ADR Authorization increased to max. 40% of shares June: The Bank of New York Mellon issues ADR shares for MMC Norilsk Nickel USSR Established Norilsk Founded August 5: Swift Acquires Controlling Shares November: Uneximbank became holder of RAO Norilsk Nickel June 30: State Concern for Non-Ferrous Metal Production

+ Politics USSR Council Resolution on Building the Norilsk Combine Norilsk Granted City Status Norilsk Nickel Becomes Joint-Stock Company (RAO) Corporate November 4: Resolution State Concern for Non-Ferrous Production Norilsk Nickel N Hernán Bianchi Benguria + Amanda Miller OPERATIONAL LANDSCAPE OF SIBERIAN NICKEL Urban Theory Lab: Operational Landscapes of Planetary Urbanization

Kara Sea Plc. 1RULOVN1LFNHO¶VLQWHUQDOGLYHUVL¿FDWLRQVWUDWHJ\FDQEHGHVFULEHGDVWKHWHUULWRULDOL]DWLRQRIWKHFRUSRUDWLRQ7RRYHUFRPHWKHGLVDGYDQWDJHVRI¿[HGUHVRXUFH STEEL H[WUDFWLRQHFRQRPLHVWKHLUVHOIVHUYLQJFRUSRUDWHSURMHFWPDQLIHVWVLQHQHUJ\LQGHSHQGHQFHWKURXJKWKHLURZQJDV¿HOGVDQGK\GURHOHFWULFGDPVDQGWKHLU

SOLD ASSETS RZQORJLVWLFVLQIUDVWUXFWXUHZKLFKLQFOXGHVDQLFHEUHDNHUFDUJRÀHHWDLUOLQHDQGUDLO$OOLDQFHVZLWKRWKHUSULYDWHLQGXVWULDOFRQJORPHUDWHVUHLQIRUFHWKLVFRU- ROMAN Chelsea porate machinery along shared interests in logistics, trade, banking, plus complementary production ventures such as steel, and even media. Operating on a ALEXANDR ABRAMOVICH Football Club SOLD ASSETS JOREDOPDUNHW1RULOVN1LFNHOKDVWDNHQDGYDQWDJHRIYDULRXVIRUPVRIHFRQRPLFH[FKDQJHZLWKLQDQGEH\RQGWKHWHUULWRU\FDSLWDOL]LQJRQ¿VFDODGYDQWDJHV ABRAMOV in the international resource trade and labor costs within its borders. Their worldwide view connects nickel as not only a base commodity of extraction, but NORILSK part of a larger network, dominated by transnational corporate power. ALEXANDR Millhouse Russian FROLOV Aluminum SOLD NN 6% STOCK PART. MERGER TOTAL RUSSIAN NORILSK OLEG NICKEL EXPORTS NICKEL Crispian DERIPASKA Sual Boardmember „„ Kola MMC RUSSIA $3.7B Investments Ltd. President NN Partners Ltd. „„ Harjavalta 9% ALISHER PART. MERGER USMANOV

Polar Division EN+ 15.8% „„ 34% 13% ENERGY 48%

Yenisei R. NORWAY „ Chita Project

Metalloinvest 6% JAPAN 17% Onexim Polyus STEEL RUSAL Holdings Ltd. „ Nikkeverk „ Isoura Plant Gold 3% SOLD NN STOCK [2008] .K. SOUTH KOREA Permafrost Boundary „ Nihama Plant SPUN OFF ASSETS [2005] MIKHAIL 24% „ Harima Plant 28% PROKHOROV CANADA

PHILIPPINES OTHER: Highland Fund Templeton > 1% „ Fraser Mine INVESTMENT Citibank, China

3% GROUP, CHINA T. Rowe Price „ Raglan Mine Coral Bay POLYUS GOLD J.P. Morgan, UK NORILSK VLADIMIR „ 30% „ Onaping Depth Feasibility Study „ Taganito POTANIN Yenisei River Interros President „ Sudbury NICKEL CEO NN INDONESIA R. Shipping Co. NN HOLDS 84% OF FORMER GOV’T ASSET

„ Sudbury BYSTRINKSY $100M INVESTMENT, Metal + Mining 6 ASSETS TANZANIA Air Transport Joint Ownership 20/60 50% FUNDED „„ Soroako Mine IN CHITA Sales 6 ASSETS „ Kabanga Feasibility Study Exploration TOLMACHEVO KRASNOYARSK Gipronickel BRAZIL 10 ASSETS RUSAL Institute FIRST DEPUTY PRIME MINISTER OF THE RUSSIAN FEDERATION, 1996-1997 RUSAL Fuel + Energy JSC Norilsk Nickel 5 ASSETS PRESIDENT OF UNEXIMBANK, FORMER 1997 „„ Onça Puma AUSTRALIA Logistics „ Koniambo Mine 13 ASSETS Research 3 ASSETS Nickel West Mine NORILSK NICKEL is traded „ State Concern for on the MICEX-RTS and by Misc. Non-Ferrous 5 ASSETS ADR in the United States, Metals Production UK and Germany „ Murrin Murrin Mine Nornickel

November 4, 1989

To Murmansk and Rotterdam Kara Sea

Yuzhno-Soleninskoye Gas Condensate Field Severo-Soleninskoye Gas Condensate Field Messoyakhskoye Gas Field Pelyatkinskoye Gas Concentrate Field Energy Export Gas Condensate Pipeline Gas Condensate Pipeline Dudinka Seaport Alykel Airport Valek Heliport / Hydroport Logistics Local Road Network Local Cargo Railway Kayerkan Town Norilsk City Settlements Yenisei River Oganer Hospital Talnakh City Nadezhda Metallurgical Plant Copper Plant Processing Dudinka Nickel Enrichment Plant Talnakh Enrichment Plant Norilsilsk Coal Pits Major Tailing Dams Zapolyarny & Medvezhy

r Mineral e Maximum Vegetation Damage: Ruchey [Ni-Cu-PGM] Mines v i

R Oktyabrsky and Taimyrsk

Woody veg. destroyed completely; soils strongly eroded Extraction i eee

ss [Ni-Cu-PGM] Mines ii Severe Vegetation Damage nnnn

ee Komsomolsky, Skalisty and Y Moderate Vegetation Damage [Ni-Cu-PGM] Mines Slight Vegetation Damage

0 40km To Krasnoyarsk Hernán Bianchi Benguria + Amanda Miller ALTER-URBANIZATION PROCESS Urban Theory Lab: Operational Landscapes of Planetary Urbanization

Democracy Workforce SOCIAL Mobilization

Reduction of Quality and Choice Cancer / Risk Opportunity EDUCATION Emancipation HEALTH Psychological Wellbeing Research and Safety Development

Regional Development Talnakh

Valek DDudinka Kayerkan World Production World Rank PRODUCTS Ni Content FIRST USE Nickel 13% 1st Ni Cathodes 99.9% - Stainless Steels Copper 2% 12th Ni Briquettes 99.8% - High Nickel Alloys & Superalloys Norilsk Oganer 5% 4th Ni Sulfate 22% - Low Expansion, Magnetic & Alykel Platinum 14% 3rd Ni Hydroxide 62% Shape Memory Alloys 44% 1st Ni Hydroxide Carbonate 45% - Alloy Steels De-Intensification 40% [Ni] Sulfide Easier and Cheaper to Extract 16% 3rd Ammonium Sulfate 16% - Cast Irons & Cast Alloys Local of World Reserves Deeper Deposits PMG - Copper Alloys Open Cut or Underground Mining Reduction Business Ruthentium - Pure Nickel & Other Alloys Easy Separation through Flotation Open Cut Mine Diversification - Plating & Electroforming Dominant Production Today Biodiversity Gold - Nickel Chemicals Nickel Reserves Depleting Fast Ore Stockpile Ore Deposits Tellurium ENVIRONMENT ECONOMIC END USE Re-Conceptualization - Architecture, Building & Construction Recycling - Automotive Industry Entrepreneurship 60% [Ni] Laterite Difficult and Expensive to Extract - Chemical, Pharmaceutical & Climate Change of World Reserves Shallow Deposits of Ni Production Process Industries - Smelting Measures Open Cut Mining Only - Design, Fabrication & Welding - Matte Conversion - Electronics Needs High Pressure Leaching - Converter Preparation Increasing Future Production - Converter Separation - Energy & Power Fair Product More Environmental Degradation - Roasting - Food & Beverage Industry Underground Mine - Anode Smelting - Medical Applications - Electrolysis - Heavy Transportation Industry - Warehouse - Water Industry

UNITED STATES MALAYSIAGERMANY SINGAPORE BELGIUM JAPAN SWEDEN WORLD NICKEL CONSUMERS FINLAND FRANCE SPAIN SOUTH KOREA CHINA ITALYUK OTHER

7KHPRQRLQGXVWULDOFRUSRUDWHFRPSOH[HVLQ6LEHULDH[HPSOLI\WKHVLPSOL¿FDWLRQRIXUEDQL]DWLRQWRPHHWWKHQHHGVRIFRUSRUDWHYDOXHV:HSURSRVHDVKLIWLQWKLV territorial imaginary on three interrelated and dependent scales—starting from the global and ending at the local. On the international scale, we hope to har- Emancipation from Corporate Monopoly: ness the growing desire, of consumers and clients vital to corporate markets, for fair and clean production chains. Nickel commodities should be ecologically DFFRXQWDEOHDWWKHVLWHRIH[WUDFWLRQDQGWKURXJKSURFHVVLQJDQGVKLSPHQW6RFLDOO\WKHSURGXFWLRQQHHGVWRRFFXULQHQYLURQPHQWVWKDWUHÀHFWZRUNHU¶VULJKWV Global client demands for accountability, health and safety. Nickel extraction needs to be held to a higher standard through consumer demand. 6LPXOWDQHRXVO\ZHVHHWKHSRWHQWLDOIRUVWDWHRUQRQJRYHUQPHQWDOLQFHQWLYL]DWLRQRIHFRQRPLFGLYHUVL¿FDWLRQDQGWKHFRQFXUUHQWGHLQWHQVL¿FDWLRQRIWKHRSHU- DWLRQDOODQGVFDSH1HZGHYHORSPHQWVFRXOGFHQWHURQVFLHQWL¿FUHVHDUFKDQGHQWUHSUHQHXUVKLSJLYHQWKHWHUULWRU\¶VXQLTXHSRVLWLRQUHODWLYHWRLVVXHVRIFOLPDWH WHUULWRULDOHFRQRPLFGLYHUVL¿FDWLRQDQGOR- change and permafrost thaw, and incorporate conservation as a focus. Forays into studying the unique ecological conditions of the Siberian and taiga would also be accessible from this site. The proximity to the must also not be discounted, as this is an increasingly vital passage from China to Europe, reducing travel distance by nearly 25% or 4,500 kilometers. We also accept that currently, further development may be deemed ecologically unsus- tainable; however, we see some of this as necessary to the third, local-scale intervention—social mobilization of the workforce. These combined interventions calized workforce mobility for social mobi- will help free existing communities from their reliance on monoindustrial work and . Despite the odds, in Norilsk a strong community exists that could DGYDQWDJHRXVO\PRELOL]HQHZRSSRUWXQLWLHVFUHDWHGIURPJUHDWHUFKRLFH(GXFDWLRQDORSSRUWXQLW\EULQJVJUHDWHUGLYHUVL¿FDWLRQDQGHQWUHSUHQHXUVKLS$PRUH GHPRFUDWL]HGVRFLHW\FRXOGSURYLGHWKHHQJLQHWKURXJKZKLFKWKHVHV\VWHPVZRXOGRSHUDWH:LWKIUHHGRPXUEDQL]DWLRQVWUDWHJLHVFRXOGFHQWHURQEHQH¿WLQJ OL]DWLRQDQGGHLQWHQVL¿FDWLRQ the wellbeing of the community and the planet.